wind energy: the export opportunity · wind energy: the export opportunity kenneth matthews irish...
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Wind Energy: The Export Opportunity
Kenneth Matthews
Irish Wind Energy Association
Agenda
Background to IWEA
Why Exporting
The Opportunity
Enablers
IWEA Aims • IWEA believes that Ireland can be a world leader in renewable
energy • Reduce CO2 emissions
• Create investment and jobs
• Increase energy security
• Create a thriving export industry
• IWEA is committed to responsible and sensitive wind energy development.
• IWEA promotes the development of onshore and offshore wind
• IWEA supports the development of other renewables particularly marine energy
IWEA Members
• Largest national network with members from various sectors
– Wind farm developers
– Turbine manufacturers
– Construction companies
– Supply companies
– Accountants
– Insurance
– Consultancy
– Legal firms
– Banks
– Small local businesses
Why Exporting UK Perspective
• Challenging onshore wind development scenario
• Large Combustion Plant Directive
– Multiple thermal plants to close in 2015-2018
• Existing nuclear due to close 2023
• 10 New nuclear plants announced ???
• Substantial Commitment to Offshore Wind
– 33GW in Round Three Crown Estates Auction
– Strong Support System - ROCs
Irish Perspective • More resource than required for domestic use
• Member of a large nearby open trading economy
• Need to create new export lead growth
• Expertise in technology and finance
Problem
Part of the Solution
Co-Operation Mechanism
Why Exporting? Keeping the Lights on…. and Green Energy
UK Security of Supply?
• UK now a net energy importer
• UK gas production has been declining by 6 per cent a year since 2000.
• In 2011, for the first time since 1967, the UK imported more natural gas than it exported.
Energy Need
• Combustion Directive
• UK Challenging RE Energy Targets
Why Exporting? We can do it cheaper
Ireland Comparative Advantage
How Exporting? Statistical Transfer V’s Physical Transfer
Facts
1. Over a fifth of the UK’s generating capacity coming off stream before 2020.
2. By the end of the decade, the UK Government is calling for 18,000 megawatts of installed offshore wind capacity
The Export Opportunity “Without cost to the Irish Consumer and to the benefit of the economy"
Jobs &
Investment
Market for Non Gov
Target Projects
Potential State Monetisation
of green credits
Investment and “Boost”
to local economies
Ireland “Home of
Green Finance”
Delivery of Strategic
Infrastructure
The Export Opportunity “Jobs and Investment”
Jobs &
Investment
Avg investment offshore €3M per MW Offshore. €3M per MW Onshore. 2GW Onshore (2020) €4Billion Potential Additional? 3GW Onshore = 3GW Offshore = €19Billion
EWEA target 40GW of offshore wind energy to be installed by 2020. Investments in offshore wind farms in Europe alone are projected at €209 billion from 2010-20 UK = 18GW Need. UK will target projects remote to UK mainland
Projected Jobs: IWEA Deloitte Study 10,700 Jobs 2020 targets Avg 2000 Job per GW = 24,000 Jobs Heavy Industry Manufacturing?
Ireland
Europe
Irish wind industry peak annual investment of between €6 billion and €12 billion by 2040. Wind has a cumulative Investment potential of €100 - €200 billion in 2050
SEAI: Wind Road Map Onshore and offshore wind could create 20,000 direct installation and O&M jobs by 2040.
The Export Opportunity “Investment and boost to local economies”
Jobs &
Investment
Market for Non Gov
Target Projects
Potential State Monetisation
of green credits
Investment and “Boost”
to local economies
Ireland “Home of
Green Finance”
Delivery of
Strategic Infrastructure
The Local Economy
Rates: Ex: 30% of County council rates in Donegal come from existing wind farm development Improved infrastructure – roads The Landowner: Sustainable income/diversification for landowners Compatible with agriculture. Community Benefit Funds For communities hosting projects Employment: Opportunity for employment - in design, construction, O&M
The Export Opportunity “Investment and boost to local economies”
2001/2 2012
The Export Opportunity “Delivery of Strategy Infrastructure”
"State Monetisation of Green credits”
Jobs &
Investment
Market for Non Gov
Target Projects
Potential State Monetisation
of Green credits
Investment and “Boost”
to local economies
Ireland “Home of
Green Finance”
Delivery of Strategic
Infrastructure
Potential Benefits to Ireland Inc: The value of Green Credit 1. The renewable value can be separated from the physical flow. = monetisation of renewable value Why = Ireland can meet its EU targets from onshore wind. (also Gov. Decision) Benefit of additional Infrastructure 1. Reduction in wholesale cost of
electricity 2. Increased security of supply 3. Certain approach could allow access
to EU funding.
Mitigation of need for planned infrastructure?? (Ireland and UK)
The Export Opportunity “Market for Non Government target Projects"
Jobs &
Investment
Market for Non Gov
Target Projects
Potential State Monetisation
of green credits
Investment and “Boost”
to local economies
Ireland “Home of
Green Finance”
Delivery of Strategic
Infrastructure
New Market Opportunities:
Gate 3 3900MW: Revised EirGrid Demand Figures need up to 4000MW. Need an additional 2000MW A portion of gate 3 projects not required to meet 2020 targets 2030 Targets?? Export Gate?
The Export Opportunity “Ireland – Home of Green Finance"
Jobs &
Investment
Market for Non Gov
Target Projects
State Monetisation
of green credits
Investment and “Boost”
to local economies
Ireland “Home of
Green Finance”
Delivery of Strategic
Infrastructure
Green Finance = Irish Green IFSC Opportunity €1 Trillion The investment required to 2020 in European power infrastructure due to ageing power generation capacity, nuclear moratoria, energy security concerns and renewable energy and climate change targets €400 Bn The estimated finance capacity of the EU electric utilities to 2020. Those utilities and Governments have been the traditional sources for that investment €600 Bn The finance gap, to which more and more those utilities and Governments are seeking to fill from private institutional investors – pension funds, insurance companies, sovereign wealth funds and family offices
“2 out of 3” to “3 out of 3”
1. Resources: 3. Plan:
2. Talent:
Every Vision Needs a Solid Base
Reflecting the need to meet binding 2020 RES-E targets onshore wind should not be compromised in pursuit of any option that could materially affect the ability to
meet domestic targets.
Government/ Industry Implementation Group to be setup bringing in the necessary private and public stakeholders and agencies, private capital,
determine the goals and then lead the implementation. (Gate 3)
1
Agreement should provide a mechanism for generators in Ireland to
participate in the UK’s support system.
2
3
Trading
Market
Integration
& Regulation
4
Interconnection
& Market
Seek EU funding in the EU 2014 – 2020 ‘Connecting Europe’ financial programme for advancing further interconnection as part of the move to integrate Ireland
more robustly to the EU energy market.
Every Vision Needs a Solid Base
Ireland export potential and the existing proven track record in the provision of fund services Ireland should create a centre of excellence for Green Finance in
the area of project financing and also the reestablishment of green funds
Establishment of Renewable energy divisions in the IDA and Enterprize Ireland to promote Ireland as the renewable energy hub of Europe
Jobs + Investment 5
6
7
Enterprize
Enterprize
R&D
Specific programme developed - floating turbine technology via demonstration facilities. Marine Refit support advanced for demonstration / pre-commercial
projects of less than 10MW.
The Export Opportunity From small seeds, big new ideas grow.
Opportunities for Ireland
• 11.5GW installed by 2020.
• Over €19bn in new investments
• Significant new Industry with potential for 28000 jobs
• World leading innovation and development centre
– Technology
– Integration
– Finance and Services
– Community
• Leading player in gigantic global industry
Time to be Ambitious